SCE customers who produce their own electricity, and who have eligible renewable energy generation systems connected to SCE’s system (interconnected) and meet program requirements, are eligible for a rate option called Net Energy Metering (NEM). The NEM option allows you to receive a credit for the surplus electricity you supply to the electric grid. This credit will then be applied to your energy bill, to offset all or part of the costs associated with the energy you consume each month.

To be eligible for NEM, your system must be sized to your historic electric use and cannot exceed 1,000 kilowatts. SCE offers several NEM programs:

Más información

Standard NEM

The NEM program uses a bi-directional meter to track the "net" difference between the amount of electricity you produce and the amount of electricity you consume during each billing period. This can be accomplished on a cumulative basis or on a time-of-use basis, depending upon your rate schedule.

As a Residential/Small Commercial NEM customer, you will continue to receive monthly bills, but only for non-energy related charges such as taxes and fees. On an annual basis, you will be billed for electricity based on your net use for the previous year – for example, the amount of electricity you used minus the amount you generated. Large Commercial/Industrial NEM Customers will continue to receive monthly bills, which will require payment of the monthly non-energy related charges (taxes and standard billing fees) and “Net” energy charges.

For SCE customers who install renewable energy system using:

Solar Photovoltaic

Wind

Fuel Cell1

Biogas

Biomass

Digester Gas

Geothermal

Hydroelectric up to 30 MW2

Landfill Gas

Municipal Solid Waste Conversion3

Ocean Thermal

Ocean Wave

Solar Thermal

Tidal Current

1 To qualify for standard NEM, a fuel cell system must be powered solely with renewable fuel. 2 A “small hydroelectric” generating facility is not an eligible renewable generating facility if it will cause an adverse impact on in stream beneficial uses or cause a change in the volume or timing of stream flow.3 Qualifying “solid waste conversion” is defined pursuant to Public Resources Code Section 25741(b)(3).

NEM with a Paired Energy Storage Device

For an NEM eligible generator that has an integrated or directly connected energy storage device (e.g., a battery) behind the same revenue meter.

NEM Aggregation

An eligible NEM customer-generator with multiple meters can elect to aggregate the electrical load of the meters located on the property where the Renewable Electrical Generating Facility is located and on all property adjacent or contiguous to that property, provided those properties are all solely owned, leased or rented by the eligible customer-generator. Under NEM Aggregation, the renewable generating facility must be sized to not exceed the annual on-site load of all the aggregated accounts and must have a total generating capacity of not more than one megawatt (MW).

Fuel Cell NEM

For SCE customers on a Time-of-Use (TOU) rate who:

Install a system using technology that the CPUC has determined will achieve reductions in emissions of greenhouse gases pursuant to subdivision (b) of PU Code § 2827.10, and

Meets the emission requirements for eligibility for funding set forth in subdivision (c) of PU Code Section 379.6, and

Commence operation on or before January 1, 2015.

Virtual Net Metering (VNM)

Under Virtual Net Metering, the owner or operator of a multi-tenant property designates the percentage of the total metered output of the generator or generators, to be allocated to each tenant service account known as ‘Benefitting Accounts’. The kilowatt-hours (kWhs) allocated to each Benefitting Account is subtracted from the tenant’s consumption resulting in a credit in the same manner as under Schedule NEM. If kilowatt-hours (kWh) credits exceed kilowatt-hours (kWh) use, those credits are carried forward to the next billing cycle, until the conclusion of the tenant’s 12-month ‘Relevant Period’.

General Market

The NEM-V Rate Schedule allows energy produced by a renewable generating facility to be credited to individually metered tenants who are connected at the same service delivery point1

1For purposes of VNM service the Service Delivery Point (SDP) is defined as the point where the distribution extension line drops from the utility’s primary distribution lines to deliver power to the customer. Extension lines that deliver power to other meters on the property are not considered separate service delivery points.

The combined capacity of generator(s) is limited to the cumulative coincident peak load of all Benefitting Accounts.

Multifamily Affordable Solar Housing (MASH)

The Multifamily Affordable Solar Housing (MASH) program, part of the California Solar Initiative (CSI), is designed to subsidize PV systems in multifamily housing which will offset electricity loads and provide economic benefits for housing property owners and managers as well as building tenants. Learn More about the MASH program.

The MASH-VNM Rate Schedule allows MASH program participants to apply the credits from a single solar system to multiple accounts at an eligible low income building.

Additional Information

For NEM customers, SCE provides a meter capable of measuring energy flow in two directions, known as a bi-directional meter. SCE will reprogram (Smart meters can be programmed to be bi-directional) or swap your meter as needed at no charge within 30 working days of receiving a complete NEM application, or apply a credit based on estimated generation during any delay.

Net Energy Metering and Transition Period

The current Net Energy Metering programs will be closed to new customers in the next couple of years, either on July 1, 2017 or earlier if SCE reaches its NEM program limit of 5 percent of SCE’s aggregated customer peak demand (currently set at 2,240MW and reviewed annually each October 1).

Customers who are already participating in an NEM program (i.e., Net Energy Metering (NEM), Virtual Net Energy Metering for Multi-Tenant and Multi-Meter Properties (NEM-V), Multifamily Affordable Solar Housing Virtual Net Metering (MASH-VNM), or NEM Aggregation) will be allowed to continue taking service on their current program for a transition period of up to 20 years before they will be transitioned to the successor tariff.

Note: The transition to a new successor tariff is directed by the California Public Utilities Commission (CPUC), pursuant to Assemble Bill 327 and CPUC Decision 14-03-041.

Direct Access Customer Eligibility

As of June 23, 2013, Direct Access (DA) customers are eligible to request and receive service on our Net Energy Metering (NEM) rate schedule.

Prior to June 23, 2013, DA customers were only eligible to receive monthly Generation credits from their ESP, if offered. Now, DA customers are also eligible to receive monthly Delivery Service energy credits, when applicable, from us. However, DA customers remain ineligible to receive net surplus compensation (NSC) from us at the end of their NEM Relevant Period.

In order for a DA customer to be served on our NEM tariff and receive Delivery Service credits from us, their ESP must also offer an NEM rate - which will be verified by our Customer Choice Services (CCS) organization.

DA Service Accounts with NEM Interconnection Agreements approved after June 23, 2013 will be placed on Schedule NEM effective with the date that Permission to Operate is issued and/or metering upgrades are completed.

DA Service Accounts that installed NEM-eligible generating facilities prior to June 23, 2013 must submit a rate change request to be placed on our NEM tariff. After ESP approvals and/or metering upgrades are completed, our NEM tariff will be established on a going forward basis from the approval date of the rate change request. Any applicable Delivery Service credits will be calculated and applied by us on our monthly billing statement. Similarly, any applicable Generation credits will be calculated and applied by the ESP on their monthly billing statement.

For additional information, please call us at 1-800-799-4723.

NEM Applications, Forms and Documents

Getting Started

System installers typically prepare and submit NEM applications on your behalf because technical documentation of the system is required. You will need to sign an NEM Interconnection Agreement. For a list of required NEM application documents

Additional Information

Change in Billing Methodology for Monthly Billed NEM Customers

To provide consistent billing practices for all NEM customers, the billing methodology for large commercial and agricultural NEM customers is being changed to include a true-up at the end of the Relevant Period. This change may help you because it provides a benefit you did not have before – a true-up of the monetary credit remaining at the end of your Relevant Period and your net energy charges billed over your 12-month Relevant Period. There is no action required on your part.

The change to the billing methodology will require us to make some modifications to our billing system before it can be implemented. We expect these modifications to be completed no later than fourth quarter 2014. Once complete, we will retroactively apply the new billing methodology to your NEM Relevant Period ending on or after December 15, 2013 – the date this change became effective. Although this change eliminates the need for you to adjust your Relevant Period start to maximize your monetary energy credit at the end of your Relevant Period, you may elect to change the start date of your Relevant Period on a one-time prospective basis by completing and returning to SCE Form 14-936, NEM One-Time Relevant Period Change Request Form.

Please understand that your Relevant Period can only be changed one time.

Net Energy Metering Cap Data

Legislation (Assembly Bill 327) passed in 2013 requires large electrical corporations to file a monthly report with the CPUC detailing the progress toward meeting the NEM program limit established in Public Utilities Code Section 2827. The information filed monthly with the CPUC is also posted below for reference purposes. The NEM program limit is currently set at five percent (5%) of each large electrical corporation's aggregate customer peak demand, and for SCE may never be lower than 2,240 MW.

1The purpose of this report is to adhere to Public Utilities (PU) Code Section 2827(c)(4)(C), which directs each large electrical corporation to file a monthly report with the California Public Utilities Commission detailing the progress toward the NEM program limit. This report includes all systems either seeking interconnection or interconnected under the NEM program pursuant to PU Code Section 2827 (e.g., solar, wind, fuel cells using renewable fuels, etc.)

2The MW from Applications Received in January, 2015 was estimated. Estimation was necessary due to a processing backlog resulting from an abnormally high volume of applications. An average system size (kW) per application was multiplied by the actual number of applications submitted through January 31, 2015. The average system size was calculated using the actuals from applications processed in October, November and December 2014.

3Includes cumulative installations approved for NEM interconnection since NEM inception in 1996 (does not include systems that terminated NEM interconnection with the utility).

Option R Tariff

Effective January 1, 2015, the enrollment cap for Option R of Rate Schedules TOU-GS-2, TOU-GS-3 and TOU-8 was increased from 150 MW to 400 MW. As a result, customers meeting the eligibility requirements for Option R may now have their eligible accounts placed on this rate option after receiving written Permission to Operate (PTO) their Generating Facility from SCE. Customers cannot “reserve” capacity under the Option R enrollment cap prior to receiving PTO.

Customers receiving service under the TOU-8 Option A Special Solar Allowance may request to take service on Option R beginning January 1, 2015, and will not be subject to the 12-month requirement of Rule 12, Section D.2.a provided they transition prior to July 1, 2015.

Interested customers should work with their SCE Account Representative to receive an Option R rate analysis so that they can ascertain the how the rate option may impact them. Customers who request to move forward with receiving service on Option R should complete and submit Form CSD-179-A, Request for a Change of Rate Schedule to MCB SPOCs .

Additional Information

To qualify for Option R tariff, your account must meet the following eligibility criteria:

Account must have annual peak demands greater than 20 kilowatts (kW) but not exceeding 4 MW

Account must have an approved generating facility interconnected that is powered by solar, wind, fuel cells or other eligible onsite Renewable Distributed Generation Technologies as defined by the CSI or SGIP

Eligible generating facilities must have a net renewable generating capacity equal to or greater than 15 percent of the customer’s annual peak demand, as recorded over the previous 12 months

For customers without 12 months of demand data, SCE will determine the annual peak demand once the customer has three months of demand data

Account must qualify for service under Rate Schedules TOU-GS-2, TOU-GS-3 or TOU-8

No other non-renewable generators on site

Permission to Operate (PTO) letter issued

Option R will be closed to new service accounts when the 400 megawatts (MW) enrollment cap is reached. After the 400 MW cap is reached, service accounts placed on Option R cannot increase the generation system size above what was previously approved. If the generation system size is increased, the account will be removed from Option R.

Below is the cumulative total.

Option R Tariff
(As of February 13, 2015)

Approved to Transition to Option R Tariff (MW)

Available Megawatts

153.38

246.62

TOU-8 Special Solar Allowance

Effective July 1, 2015, the TOU-8 Option A Special Solar Allowance will be closed to new customers. Customers receiving service under the TOU-8 Option A Special Solar Allowance may request to take service on Option R prior to July 1, 2015. Customers electing to transition from the TOU-8 Option A Special Solar Allowance to Option R prior to July 1, 2015 are not subject to the 12-month residency requirement of Rule 12, Section D.2.a. Rate

Interested customers should work with their SCE Account Representative to receive an Option A rate analysis so that they can ascertain the how the rate option may impact them. Customers who request to move forward with receiving service on Option A should complete and submit Form CSD-179-A, Request for a Change of Rate Schedule to MCB SPOCs.

Additional Information

To qualify for TOU-8 Option A tariff (Solar Allowance), the account must meet the following eligibility criteria:

Demand greater than 500 kW but not exceeding 4 MW

Account qualifies for Schedule TOU-8

For customers without 12 months of demand data, SCE will determine the annual peak demand once the customer has three months of demand data

On site eligible renewable generator installed with net capacities 15% or greater than the customer’s annual peak demand recorded over the previous 12 months

No other non-renewable generator is on site

Permission to Operate (PTO) letter issued

Rate change requested. Eligible applicants will be given 15 calendar days from the date SCE approves their eligibility to sign up for the Option A tariff by submitting a Rate Change Request form

Option A will be closed to new service accounts when the 50 megawatts (MW) enrollment cap is reached. After the 50 MW cap is reached, service accounts placed on Option A cannot increase the generation system size above what was previously approved. If the generation system size is increased, the account will be removed from Option A.